Gone are the days when performance metrics used to be limited to revenue per sales representative. Businesses today are calling for updated methods and performance metrics to grow significantly in short times.
Performance metrics give you a good idea of your team’s current standing & highlight areas to improve
Following the below mentioned tips would not only bring a hike in the revenue, but would also help to increase the number of successfully closed deals and that too of substantial amount, which is the ultimate goal of every sales department.
Lead Response Time
Time is of extreme value. This should be the motto of every sales rep. Customers in the modern world don’t like waiting for; forget days, they don’t even want to wait for hours. If you’re contacting them within an hour, studies suggest that the chances of leading to a meaningful conversation increase by 7 times. Besides the quick response, the sales team should make sure that rather than opting for an automated response, a personal phone call by an actual sales rep would have a better impact on the customer purchase intent.
Opportunity Win Ratio
Excellent networking skills and conversation starting skills are great to have in your sales rep. But they are of less use if your sales rep never gets to close the deal on a winning note. Therefore it’s very necessary to keep a track of the number of leads, and how many of those are closed.
Size of the Deal
“Make sure that the juice is worth the squeeze.”
Not every opportunity is worth making an effort. There are some opportunities that are so minimal in amount that the sales department should not waste their precious time on them. The sales rep should make sure that the opportunity is worth the effort. They can do this by take an average deal size and make it a standard. Such deals that are below it, should be ignored. However, the ones that are either on par or above it should be pursued. The trickiest ones are that are highly priced as compared to the benchmark. In such a scenario, it should be a handled by an experienced sales rep in order to close a big client.
Focus on summarized performance metrics that can be used to monitor the performance of the sales reps.
Key Metric Performance indicators
These are the mega tools to measure the performance. The sales manager should simply
- Set index rates of how frequent the sales rep contacts the potential customer.
- How many times does he convert the opportunity in to a closed deal on a winning note.
- The average deal size that the sales rep is closing on and the time he takes to close a deal.
- Sales manager should analyze the performance of all the sales reps.
- He should listen up to their call recordings and see if they are doing it the right way.
If not, the sales reps should be given relevant training in order to boost the sales.
Performance metrics are critical for your company to stay in business
Thanks to the modern performance metrics that keeping a track of the performance of your sales reps isn’t as difficult as it used to be earlier.